A Middelburg insurance broker, Adell van Wyk, has been hit with a hefty R1 million administrative penalty and handed a 15-year debarment for instructing an independent broker to process payments without a client’s consent.
Last week, the Financial Sector Conduct Authority (FSCA) released a statement announcing its regulatory action against van Wyk. Additionally, the FSCA imposed a R100 000 penalty on Wenru (Pty) Ltd (FSP 45153), the financial services provider involved in the case.
The FSCA’s actions followed an investigation into van Wyk and Wenru’s conduct.
“The findings of the FSCA investigation include that Van Wyk instructed Wenru to process payments without the relevant client’s consent, and Wenru failed in their duties to observe the utmost good faith and to exercise the care and diligence required of them,” the Authority states.
Under the terms of the debarment order, van Wyk is prohibited for 15 years from providing financial services, acting as a key person for any financial institution, or offering certain financial services through outsourcing arrangements.
The order also stipulates that she has 30 days from 4 September – the date the administrative penalty order was issued – to pay the R1 million.
Failure to comply with this order could trigger the provisions of Section 170 of the Financial Sector Regulation Act (FSR Act), which allows the FSCA to file the unpaid penalty with the registrar of a competent court. Once filed, the order would hold the force of a civil judgment and could be enforced accordingly.
The same enforcement measures will apply to Wenru if the R100 000 administrative penalty is not settled within the prescribed time.
The FSCA also issued Wenru with a directive to strengthen its systems and processes to minimise the risk of clients suffering financial losses due to theft, fraud, dishonesty, poor administration, negligence, professional misconduct, or culpable omissions. As part of this directive, Wenru is required to submit a detailed report to the FSCA within 30 days (also from 4 September), outlining the measures it has implemented to address these risks and enhance its operational safeguards.
According to Wenru’s website, the independent brokerage was founded in 1998 by Peet Wentzel and has since grown into “the largest independent insurance broker in Middelburg, Mpumalanga”. Although the website highlights the brokerage’s “experts”, Van Wyk’s name is notably absent.
Moonstone reached out to Wentzel to clarify Van Wyk’s relationship with Wenru and if either Van Wyk or Wenru plans to contest the FSCA’s findings by taking the matter to the Financial Services Tribunal (FST). Wentzel stated that Wenru will appeal the FSCA’s decision with the Financial Services Tribunal.
News24 reports that company records show Van Wyk was a director at Wenru until her resignation in 2020. In an email to News24, Wentzel confirmed that the incident involved a single client. Wentzel told News24 that the client contacted Wenru to make inquiries. He said Wenru immediately investigated the matter and followed regulations to alert authorities.
Wentzel also noted that the client had filed a claim in court seeking reimbursement for losses from Van Wyk.
